School districts are the economic engines of Long Island real estate. High-performing schools attract buyers, bolster property values, and, conversely, shape the property tax landscape that homeowners manage yearly. On Tuesday, May 19, 2026, voters across 120 school districts in Nassau and Suffolk counties headed to the polls to decide the fate of their local school budgets.

The results reflect a community balancing the desire for robust educational programming with the realities of localized inflationary pressures and property tax caps. Here is a comprehensive breakdown of where the budgets stand and what it means for the local housing market.

The Big Picture: High Pass Rates with Notable Exceptions

Out of the 120 school districts on Long Island, the overwhelming majority of spending plans were approved by voters. Historically, Long Island communities heavily back their school systems, recognizing the direct correlation between school reputation and residential equity.

However, five districts faced budget rejections, and one remains unannounced. The districts where budgets failed encountered headwinds primarily related to attempting to pierce the state-mandated tax cap, requiring a 60% supermajority, or facing community pushback over expanding expenditures.

The Defeated Budgets

When a school budget fails on the first vote, school boards must decide whether to put a revised budget (or the same budget) up for a revote in June, or immediately adopt a contingency budget, which freezes the tax levy and often forces cuts to non-contingent expenses like athletics, clubs, and equipment.

Bayport-Blue Point (Suffolk County): The proposed $88.3M budget failed by a vote of 679 to 568. The plan attempted to pierce the district’s -0.76% tax levy cap with a 2.75% increase, falling short of the required 60% supermajority.

Islip (Suffolk County): Islip’s $106.2M spending plan was rejected 859 to 639. The district sought a 2.85% tax levy increase, which exceeded its calculated 2.22% tax cap.

Locust Valley (Nassau County): In a tight race, voters rejected the $100.2M budget by an 850-765 margin. Interestingly, this budget stayed within the district's 2.84% tax cap, proposing a 2.1% tax levy increase, yet still faced defeat.

South Country (Suffolk County): Facing the widest margin of defeat, the $150.7M budget failed 2,747 to 1,105. The proposal aimed to significantly pierce its 5.52% tax cap with a 13.45% tax levy increase to bridge gaps between revenues and rising expenditures.

Three Village (Suffolk County): The $244.9M budget was voted down 2,340 to 2,051. The plan proposed a 4.54% tax levy increase, which stayed within its allowable tax cap, but did not find enough community consensus.

Note: As of the morning following the vote, results for the Roosevelt Union Free School District have yet to be officially reported.

The High-Stakes Battle Over Tax Cap Piercing

For a handful of Long Island school districts, staying within the state-mandated property tax cap was not an option this year due to soaring healthcare, special education, and operational costs. Piercing the cap requires a 60% supermajority approval from voters rather than a simple majority—a steep hill to climb in today's economic climate. The results were mixed, highlighting a sharp divide in community sentiment across different neighborhoods. On the South Shore, South Country Central School District proposed the island's most aggressive override, aiming to exceed its cap by 8% with a 13.45% tax levy increase ($5.67M over the limit), which ultimately met a resounding defeat at the polls. Similarly, Bayport-Blue Point sought to override its unique negative cap (-0.76%) with a 2.75% levy increase, failing to reach the necessary 60% threshold. Islip also fell short when voters rejected its 2.85% levy hike, which exceeded its 2.22% allowable limit.

Conversely, other communities demonstrated a willingness to take on a heavier tax burden to preserve local school offerings. On the North Fork, Greenport voters overwhelmingly approved an 7.91% tax levy hike—exceeding its 3.04% cap by nearly $919,000—with a 72% "Yes" vote to maintain student extracurriculars despite significant staff restructuring. Shelter Island successfully secured a 68% supermajority to pass a 6.78% tax levy increase, which district officials state will stabilize their budget for years to come. In Nassau County, Lynbrook also successfully pierced its cap, passing a $115 million spending plan with an impressive 72% approval rate.

Read how the tax cap operates here.